Boston Property Management: Why you should buy a home in 2017
2017 feels like as if it will be a turbulent year. It feels that way as the interest rates are climbing and will continue to climb. There aren’t many sellers which means that there is a lower inventory to choose from. This also means that the home prices will climb and there won’t be a drop anytime soon.
It is natural for prices to go up when there is a lot of demand for a limited inventory. It’s a gamble waiting for the market to settle. This is why there tends to be a strong demand. This post looks at each of the factors in detail.
There was a time when mortgage rates went sky high and the prices didn’t go down. This was in the early 80s and led to a huge problem. Around last year the mortgage rates were pretty decent and were sitting at 3.55 percent. The federal reserve has finally decided to increase the rates and this means that the mortgage rates will slowly start to rise. At the moment the rate is at a bit above 4 percent. This could be around 6 percent by 2019 or 2020. This will make it tougher for people to get on to the property market. It’s not as if this will make a huge difference to your repayments. At most it would mean an increase of around $90-100 per month on your payments. It is still much better than 18 percent in 1981.
Boston Property Management: Decline in inventory
The number of homes on sale last year declined 10 percent from the year before. Signs clearly show that they will keep declining, though this means that people will still have something to choose from. It could be that the numbers will go down even further next year. So if you do something about it right now instead of waiting for the summer, then there will be less competition for the homes. The time you save will be valuable for you. This means that there will be less competition.
Increase in home prices
Home prices are at a higher level than before. They will continue to rise slowly but steadily. Due to the uncertainty in the air, people are not so optimistic. So you have to keep an eye out for slowly increasing prices.
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